On Thursday HSBC reported that Chinese preliminary manufacturing purchasing managers index fell to 48.3 in February against an expectation of 49.4 and compared to 49.5 in January. A value below 50 indicates that the manufacturing economy is in contraction.
Gold futures for April delivery is trading flat at $ 1317 per ounce during Asian trading on the Comex division of the New York Mercantile Exchange. Yesterday, it fell $3.50, or 0.3%, to settle at $1,316.90 an ounce.
March silver futures are trading down 0.089 cents at $ 21.595 per ounce on COMEX division of the New York Mercantile Exchange. Yesterday, it closed down nearly 17 cents, or 0.8%, to $21.68 an ounce a day after ending an 11-session winning streak.
The international gold futures for April delivery have gained by as much as $73 or nearly 6% at $ 1332.4 an ounce in the month of February 2014, rallying to the highest levels since November 2013. In the year so far the metal has rallied by more than $100 after ending 2013 with disastrous losses of 28%.
The yellow metal has rallied recently due to soft jobs, manufacturing and other economic indicators that prompted many investors to speculate that the Federal Reserve may slow the pace at which it tapers its asset-buying stimulus program.
MCX April gold futures may open today’s session near Rs 29850 levels with support near Rs 29800-750 levels.